Will Baristas and customers force Starbucks' new CEO to make changes?

Starbucks's new CEO Brian Niccol is experiencing a tremendous battle in his office after taking the top slot at Starbucks because baristas and loyal customers are demanding change for the better in the company.

Out in the streets, baristas sound a complaints about chronic understaffing and poor pay, as well as an utter lack of support when confronted with aggressive behaviour from customers. They also want clearer policies on how to deal with aggressive behaviour within the stores. Meanwhile, passionate customers express discontent over the quality of the coffee being presented, calling for a return to quality brews each time around.

Starbucks shares tumbled about 5 per cent in the company's premarket trading following a report that same-store sales fell 6 per cent in the U.S. during the fourth quarter and the company dialled back its earnings guidance for the coming fiscal year. Niccol responded by saying the company needs to better support its baristas to improve customer service. "To succeed we need to address staffing in our stores, remove bottlenecks and simplify things for our baristas," he said in a video message.

Liv Ryan is a barista and a union organiser at the Long Island Starbucks. "I have been told countless times that part of our job is 'just taking rude customers,'" she said, pointing out that when it comes to such issues, handling them remains ambiguous.

Union organisers, among them Parker Davis of San Antonio, have threatened to force a collective bargaining agreement by year-end as they negotiate with the company. Analysts said that one of the clear strategies for Niccol was the escalation in labour hours and the reduction in limited-time offerings. As Sharon Zackfia, an analyst at William Blair, said, the changes may help alleviate some of the pressures impacting the firm.

Outside of employees, the location has voiced concerns through subdued customers by complaining about the quality of their coffee. Winter has been a devoted Starbucks regular and has been to over 19,000 stores. She said that the coffee was over-roasted and too rich when they started offering speciality drinks. "Getting some fancy drink isn't going to make me like it any better," Winter said, speaking for the sentiments of many consistent customers.

More detailed plans on the measures taken to counter these issues will probably be elaborated by Niccol in Starbucks' earnings call for the third quarter and for the year after this company is expected to make an earnings call on October 30. The new CEO will face both of these challenges, and it will be important that the company respond in harmony with the two demands of customer pressure and increasing barista complaints the solution to one challenge will automatically influence the other.